EU Parliament committee backs 87.5% car CO2 target for 2035, easing combustion ban

Committee vote on car and van targets

The environment committee of the European Parliament adopted its negotiating position on 4 November, backing it with 48 votes in favour, 30 against and two abstentions. The text rewrites CO2 emission targets for new cars and light commercial vehicles and adds incentives for low-emission vehicles built in the EU. The compromise was struck on 20 October by the European People's Party, the Socialists and Democrats and the liberal Renew group. The full Parliament is expected to vote in mid-December, while the 27 member states are working on their own joint position in parallel.

Cars: from a full cut to 87.5% by 2035

Current rules require a 100% cut in average CO2 emissions from new cars by 2035, measured against 2021 levels, and under that plan only emission-free cars could be registered from 2035. MEPs propose lowering the 2035 cut to 87.5%. Manufacturers could cover the remaining 7.5 percentage points by using low-carbon steel produced in the EU, taking the overall target to 95%. A 5% share would therefore remain unconditional, which means combustion-engine cars could still be registered without offset obligations. Steel credits could cover up to 3% of the targets for cars and vans until the end of 2034.

Vans and the 2030 milestone

For light commercial vehicles, MEPs propose a 35% cut by 2030, below the 40% in the Commission text and the 50% set in current law. The 2035 target would fall from 100% to 80%, with steel credits of up to 7.5% also available. Stellantis and Renault had asked for a revision of the parameters, pointing to the difficulties of spreading electric vans, Il Fatto Quotidiano reports.

Fuels, zero-emission definition and company fleets

The text defines vehicles running exclusively on eligible fuels, known as Veef, as cars and vans that use only renewable or low-carbon fuels meeting set criteria. Those vehicles would be counted alongside tailpipe zero-emission vehicles in the zero-emission definition. The committee also creates super-credits for electric vehicles produced in Europe, with small electric cars up to 4.2 metres long among those covered. The transport and environment committees both backed dropping the Commission's proposed mandatory replacement of company fleets with electric or low-emission cars.

Industry and national reactions

Confindustria and Germany's BDI issued a joint statement calling the compromise a step forward, while asking for more ambition.

“The compromise represents a step forward, but more ambition and flexibility are needed to safeguard the competitiveness of the European car industry.”

The two business groups want the 2035 cut raised to 90% without conditions, a review of fuel restrictions so Veef compete on equal terms, and no mandatory quotas for company fleets, with indicative national targets instead. Germany and France have also presented softened positions. KO MEP Elżbieta Łukacijewska, a member of the environment committee, told RMF FM she was glad common sense had won, arguing that the changes give companies more flexibility and lower costs.

German registrations in October

Germany's Federal Motor Transport Authority (KBA), based in Flensburg, reported about 94,000 battery-electric cars newly registered in October 2026, about 80% more than in October 2025. Pure electric cars made up 37% of new registrations. Petrol and diesel cars together reached about 62,400, with both fuel types down sharply on a year earlier. Total new passenger car registrations were 254,500, up 1.7% from October 2025. Spiegel attributes the strong demand to the federal e-car premium and high fuel prices.

Battery-electric (about)94,000

Petrol and diesel combined (about)62,400

All new passenger cars254,500

Battery-electric (about)

94000 vehicles

Petrol and diesel combined (about)

62400 vehicles

All new passenger cars

254500 vehicles

Data from the article text

What happens next

The Commission proposed a 90% target in December 2025, and the steps since then are set out below. The plenary is expected to vote in mid-December. Parliament and the Council must then agree on a common position before any change to the rules can take effect.